No personal income tax on worldwide income
Not applicable to French nationals, who remain taxable in France
No inheritance or gift tax between close relatives
Limited double tax treaty network compared with larger EU states
Personal tax benefits generally require relocation
Corporate income tax is up to 25% if more than 25% of turnover is generated outside Monaco
Banking and compliance requirements are relatively strict
Monaco is a sovereign principality on the French Riviera, bordering France and the Mediterranean. It is not an EU member but uses the euro and follows French VAT/customs rules. Population about 38,000 habitants; known for stability, security, and private banking.
Personal tax: Residents generally pay no income tax on worldwide income, except French nationals (who remain subject to French income tax per the France-Monaco agreement).
Corporate tax: 25% if >25% of turnover is generated outside Monaco. If ≥75% of turnover is inside Monaco, corporate tax may be avoided (subject to legal conditions and real economic substance).
Other taxes: 0% withholding tax on dividends; no capital gains tax or wealth tax at Monaco level.
Important: Monaco is under increased FATF monitoring and classified by the EU as a high-risk third country for AML/CFT. This does not prevent company formation or banking, but leads to enhanced due diligence, stricter compliance, and longer onboarding at EU banks.
Contact us for an individual assessment and possible alternative solutions.
Usually several weeks to a few months, depending on regulatory approval, the completeness of the documentation, and bank onboarding. Opening the bank account is often the most time-consuming step.
Parts of the process can be handled remotely, in particular document preparation and formal registration steps. However, opening a bank account as well as residency and substance requirements often require at least some personal presence or strong local representation. In practice, you should plan for at least one in-person appointment.
Parts of the process can be handled remotely, in particular document preparation and formal registration steps. However, opening a bank account as well as residency and substance requirements often require at least some personal presence or strong local representation. In practice, you should plan for at least one in-person appointment.
Not mandatory in every case. In practice, however, local presence and authorised signatories may be relevant for approvals and banking processes. Substance is therefore an important factor.
Generally yes, provided the business activity is clearly defined and the documentation is complete. For foreign shareholders, additional compliance checks should be expected. Monaco has digital procedures for VAT-related registrations.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
|
|
|
|
from EUR 1,900 |
| Singapore | 0% |
|
|
|
|
from EUR 2,950 |
| Hong Kong | 0% |
|
|
|
|
from EUR 1,900 |
| Cyprus | 15% |
|
|
|
|
from EUR 1,900 |
| Malta | 5% |
|
|
|
|
from EUR 2,500 |
| Ireland | 12,5% |
|
|
|
|
from EUR 1,950 |
| Trust | 0% |
|
|
|
|
from EUR 4,900 |
| England | 25-19% |
|
|
|
|
from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income— in some cases even when profits are not distributed.
Depending on your personal situation, a suitable holding structure may be required to comply with tax regulations and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
